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Governance

What if we disclosed everything?

Marcos Siqueira's picture
One day in 2012, when I was the head of a Public-Private Partnership (PPP) Unit in a subnational government in Brazil, I woke up at 7:00 am to my phone ringing. I was surprised to see that it was the State Governor calling me – not his assistant but him, personally. He was not happy and had a very direct question: Why are today’s newspapers saying that one of our most successful PPP projects is failing to meet quality standards?
 
Image: www.e-builder.net

The day before I received the Governor’s phone call, I had ordered disclosure of full performance reports for all PPP projects on our website. This was the first time that any government had done that in Brazil. The particular project that the Governor had mentioned was a toll road that scored 83 percent in the previous trimester[1]. This was a fantastic score from a technical perspective. Besides, the performance indicators that we used were created to maintain incentives for improvement over the life of the contract. It was never meant for the private party to score 100 percent. Unfortunately, the news reporter did not understand this and didn’t invest time to ask – so I received the governor’s call. At that moment I knew I had a very strong case to make.

From my experience of more than eight years managing transactions and capacity building programs in Latin America and Africa, a radical approach to transparency is the key to enable PPPs to deliver more and better infrastructure services. In other words, I am fully convinced that opacity is the shortest route PPP projects can take towards the expensive failures mentioned by Laurence in his inaugural blog post.

The crude truth is that opaque PPP policies serve a lot of interests, but almost none of them benefit service users or taxpayers.  Here are some of the key points on transparency in PPPs, from my perspective:

Structured dialogue, value chain and competitiveness: A journey through implementation, from Copenhagen to Kabul

Steve Utterwulghe's picture



Afghanistan. Photo by Steve Utterwulghe.

This latest blog post should start with a mea culpa. Indeed, my 2015 work plan for public-private dialogue (PPD) did start in Dushanbe, Tajikistan, not Copenhagen. However, who can swear that he never tweaked a title a tiny bit to make it catchier?
 
While Dushanbe hosted the very productive First Regional PPD Forum in the “stans,” the 8th Global PPD Workshop took place in March in the Danish capital. There, “more than 300 representatives from governments, private enterprises, PPD coordination units, investors’ councils, competitiveness partnerships, civil society, business organizations, and various development partners participated in the event. They represented 54 countries and a total of 40 PPD initiatives who joined the event to share their experiences and discuss lessons learned.”
 
High-powered individuals kick-started the Copenhagen event, including HRH Crown Princess Mary of Denmark, who reiterated that, to make a difference in the world, “it will take partnerships across countries, governments, and between public and private sectors.”
 
Once the keynote speeches had been delivered, the real work began among the delegates and with the PPD experts. I jumped from impromptu coffee break to coffee break and strategized with the Côte d’Ivoire delegation on how to prepare for the National Day of Partnership/Dialogue in Abidjan; discussed ways to better involve the private sector in Morocco; debriefed with the Guinea Minister of Industry, SMEs and Private Sector Promotion on how the PPD structure that we helped put in place is strengthening the local value chain for extractive industries (see below); and moderated an engaging session on public-private dialogue in fragile states and conflict-affected countries (FCS), which provided great insights as I prepared to fly out on PPD missions to Somalia and Afghanistan.
 
Aside from the buzz of international gatherings, what really matters for the delegates, from both governments and the private sector, is to get inspired and bring back home ideas that can be adapted locally and successfully implemented. Public-private dialogue is an art defined by some fundamental core principles that can be adjusted according to specific needs and environments.
 
As a reminder, PPD refers to the structured interaction between the public and private sectors to promote the right conditions for private sector development. Its ultimate function is to contribute to a prosperous economy by expanding market opportunities and enabling private initiative. This is also very much the mission of the new World Bank Group Global Practice on Trade & Competitiveness (T&C). Its Senior Director, Anabel Gonzales, wrote in one of her blog posts on Trade and Development in Africa that fostering competitiveness and strengthening supply chains is a key to development and an integral part of T&C’s offering.
 
As I reflected on the links between structured multi-stakeholder dialogue, competitiveness and supply chains, I remembered a Harvard Business Review article written by Michael Porter and Mark Kramer, entitled Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility.
 
What particularly caught my attention at the time was the theory on interdependence between companies and society that the Harvard professors put forward. They argued that this interdependence takes two forms: the social impact that a company’s activities has on society, or “inside-out linkages,” and the social influences on the company’s competitiveness, or “outside-in linkages.”
 

Pushing the frontier of e-government procurement in Africa with the open contracting standard

Lindsey Marchessault's picture

Public procurement is a linchpin for good governance and effective public service delivery, both of which are critical to the sustainable development of Africa. In many countries throughout the region, strengthening procurement to address weaknesses in public sector governance has become a priority. 
 

Accountability inside out & outside in

Rosemary McGee's picture

 Zackary Canepari / Panos​In our eagerness to be constructive, we who work for accountable governance from our comfort zones in the global north sometimes forget what it’s like to live with a deeply unaccountable state.  I don’t just mean finding that the party we voted for has since done a U-turn on a pre-election policy promise (a sensitive issue in the UK this week as the hotly contested general elections loom). I mean being a citizen within a state that has a history of torturing and massacring its citizens.  For instance, how does it sound to a Guatemalan indigenous community when an international agency urges it to hold its state to account through ‘constructive engagement’?

At IDS on 30 April, Making All Voices Count’s Research, Evidence and Learning component hosted the third workshop in a series focused on accountability, organised jointly with the Transparency & Accountability Initiative and the World Bank’s Global Partnership for Social Accountability. We chose as a theme The Quest for citizen-led accountability: Looking inside the state.  Libraries overflowing with literature on the state and its institutions haven’t proven very useable for social actors who see the state within an ‘accountability politics’ frame[1], and come at it in campaigning mode.  This event brought together some of the scholars who’ve written that literature with some of those social actors who lead and support those rights-claiming processes, to unpack the state in ways that might help citizen-led accountability struggles gain purchase.

Sharing the most politically nuanced analysis of accountability that has ever been developed under World Bank auspices, Anu Joshi (IDS) and Helene Grandvoinnet (Lead Social Development Specialist, World Bank) offered a series of reflections, insights and devices for digging down inside of “context” so as to understand what makes state actors tick.  Their work points to what can be learnt by applying to state actors – individual and collective – what we already know about citizen actors – individual and collective.  Among these are the notion that power relations are at work not only between citizens and the state, but between one state actor and another; and that for governance to become more responsive and accountable, state officials may need to be empowered or mobilized at least as much as they need to be informed.  Here was ‘the state’ viewed on the inside, and from the inside looking out.
 

Rousseau isn’t the first, nor last, to negotiate a ‘social contract’

Mehrunisa Qayyum's picture
Webcast Replay



“50% of Arab world citizens are dissatisfied with public services in their area,” according to a World Bank survey — which prompted not one, but two sessions at the World Bank Group-International Monetary Fund Spring Meetings. So it was no coincidence that the meme #BreaktheCycle emerged in another Middle East and North Africa (MENA) panel, “Creating Jobs and Improving Services: A New Social Contract in the Arab World,” which also revisited the theme of the social contract in both oil-importing and exporting countries.

Innovation and collaboration for rapid results in public procurement

Sarah Lavin's picture


The World Bank’s Governance Global Practice (GGP) is integrating its approach to address technical and political constraints to effective public procurement in Cameroon.
 
In efforts to boost efficiency and integrity in public spending, the Government of Cameroon created the Ministry of Public Procurement (MINMAP), the first of its kind in the world, to take responsibility for providing oversight to public contract procurement and management. It is also in charge of executing high value contracts on behalf of all sector ministries and designing public procurement policies and capacity development strategies in partnership with the pre-existing public procurement regulatory body (ARMP).

Financial risk, resilience and realism: ‘New Economic Thinking,’ amid ominous tremors from the eurozone

Christopher Colford's picture



How safe and how stable is today’s international financial system? Eight years since the global bond markets started quaking – and almost seven years since the Lehman Brothers debacle triggered a worldwide meltdown – is the financial system resilient enough to recover from sudden shocks?

These are not just rhetorical questions, but urgent ones. Amid the ominous recent tremors within the European Union – with the intensifying risk that insolvent Greece could soon “crash out” of the eurozone if it fails to extract more bailout money from its exasperated rescuers – the global financial system may be about to get another real-life lesson in riding out traumatic turbulence.

So mark your calendars for this Wednesday, May 6, when a top-level conference with some of the world’s leading financial luminaries will be livestreamed online at (click here) this website from 9 a.m. to about 5 p.m. Many of the world’s top regulators, policymakers and scholars – brought together by the Institute for New Economic Thinking – will gather at the International Monetary Fund for a day-long exploration of “Finance and Society.”

A sense of déjà vu might seem to surround the conference agenda, especially for World Bank and IMF colleagues who recall the nonstop financial anxiety that consumed the Spring Meetings just a few weeks ago. A similar economic dread reportedly pervaded last week’s Milken Global Economic Conference in Los Angeles.

Yet the INET conference may be poised to offer a somewhat different perspective. The Spring Meetings featured the familiar lineup of business-suited, grim-and-greying Finance Ministers – mostly male, mostly middle-aged, mostly mainstream moderates – but the group of experts at the “Finance and Society” conference will reflect a welcome new dose of diversity. Every major speaker on the agenda is a woman.

The economists at the pinnacle of the world’s most powerful financial institutions – Christine Lagarde of the IMF and Janet Yellen of the U.S. Federal Reserve System – will keynote the conference, and the proceedings will include such influential financial supervisors as Sarah Booth Raskin of the U.S. Treasury and Brooksley Born and Sharon Bowen of the U.S. Commodity Futures Trading Commission. There’ll also be a pre-conference speech by the woman who has suddenly galvanized the Washington economic debate: No, not Hillary Clinton, but Senator Elizabeth Warren.

The new global roster of financial leaders – in this conference's case, all of them women – illustrates how economic policymaking is now, at last, drawing on the skills of an ever-wider-ranging talent pool. The economic expertise featured this week is bound to mark a positive step forward, considering the ruinous impact of the recent mismanagement by middle-aged mainstream men. (Sorry, guys, but can you really blame people for noticing that the pale-stale-and-male crowd allowed the world to drift toward the Crash of 2008?)

This week’s conference agenda is admirably forthright about the challenge: “Complexity, special interest, and weak systems of governance and accountability continue to interfere with the ability of the financial system to serve society's needs.” With Lagarde and Yellen setting the tone – and with Warren adding an injection of populist vigor – this week’s INET conference seems likely to offer some imaginative insights that go beyond the familiar Spring Meetings formula.

If ever there were a time when an INET-style dose of “new economic thinking” might be needed, it’s now. Growth is sluggish and sometimes even stagnant in many developed nations, amid what Largarde calls “the new mediocre.” Markets are fragile and currencies are volatile in many developing countries. A commodity-price slump may drain the coffers of many resource-rich but undiversified economies. As mournful pundits have been lamenting seemingly ad infinitum and sans frontières, the global economy is suffering from a prolonged hangover after its pre-2008 binge of irrational exuberance.

As if the worries about “secular stagnation” were not enough, there’s also the tragedy of Greece, where an economic calamity has unfolded like a slow-motion car wreck as financial markets breathlessly await the all-too-predictable collision. Regular readers of this blog will surely have noted that fears of Greece’s potential crashout from the eurozone have been nearing a crescendo – and the possible default-to-the-drachma drama may soon reach its catharsis.

In Edo State good governance doesn’t square with delivery

Katherine Anne Bain's picture


Photo credit: Jbdodane

When Governor Adams Oshiomhole took office in Edo State, Nigeria, in November 2008, it was on the back of a protracted battle to retrieve his mandate through the electoral courts and through fractious politicking by labour and civil society groups.

After a scale of violence in the summer of 2009, across the oil-rich Niger Delta region, oilfields shut down and 200,000 people were displaced.

The public expected that Oshiomhole would deliver on his promise of “a citizens' government," but “quick wins” would be a challenge. After years of neglect, inaction and patronage politics, the state’s administration was untrusted, mired in dysfunction, fiscal uncertainty and debt.

By 2012, the governor had returned for a second term with an increased majority in an election widely touted as relatively free and fair. No small part of this success is due to signature efforts in ramping up capital spending, especially around roads and civil infrastructure.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 
Freedom of the Press 2015
Freedom House
Freedom of the Press 2015, the latest edition of an annual report published by Freedom House since 1980, found that global press freedom declined in 2014 to its lowest point in more than 10 years. The rate of decline also accelerated drastically, with the global average score suffering its largest one-year drop in a decade. The share of the world’s population that enjoys a Free press stood at 14 percent, meaning only one in seven people live in countries where coverage of political news is robust, the safety of journalists is guaranteed, state intrusion in media affairs is minimal, and the press is not subject to onerous legal or economic pressures.  The steepest declines worldwide relate to two factors: the passage and use of restrictive laws against the press—often on national security grounds—and the ability of local and foreign journalists to physically access and report freely from a given country, including protest sites and conflict areas. Paradoxically, in a time of seemingly unlimited access to information

The Path to Happiness: Lessons From the 2015 World Happiness Report
Huffington Post
Getting richer but not happier: It's a familiar story, for people and for nations. The purpose of the World Happiness Report, now in its third edition for 2015, is to remind governments, civil society, and individuals that income alone cannot secure our well-being. True happiness depends on social capital, not just financial capital. The evidence is straightforward. Around the world Gallup International asks people about their satisfaction with life. "Imagine a ladder with steps numbered from zero at the bottom to 10 at the top. The top of the ladder represents the best possible life for you and the bottom of the ladder represents the worst possible life for you. On which step of the ladder would you say you personally feel you stand?" Countries differ widely, and systematically, in their average scores. Using these scores, it is then possible to determine, statistically, the causes of life satisfaction around the world.
 

What would Pakistan 2.0 look like?

Ravi Kumar's picture
Moonlit Gate, Lahore, Pakistan  Gateway to the Badshahi Mosque, with Lahore Fort opposite
Gateway to the Badshahi Mosque, with Lahore Fort opposite. Photo: Michael Foley

If you have ever doubted that the mother of invention is necessity, then look no further than Pakistan.
 
Pakistan has struggled to provide opportunities to its people for decades. But the country is turning the tide.
 
People in Pakistan are determined to define their destiny. They are using all of the resources at their disposal to tackle their challenges..


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